Cars.com Inc (CARS)

Current ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	178,438	189,336	157,309	144,651	148,627	154,518	137,662	138,403	147,437	161,710	162,277	158,238	178,081	154,049	141,522	291,287	122,440	129,572	112,844	140,872
Total current liabilities	US$ in thousands	145,748	130,965	120,563	107,348	106,012	106,229	84,825	95,802	94,290	96,387	95,972	98,422	90,368	112,876	94,999	98,310	98,806	121,805	112,518	119,956
Current ratio		1.22	1.45	1.30	1.35	1.40	1.45	1.62	1.44	1.56	1.68	1.69	1.61	1.97	1.36	1.49	2.96	1.24	1.06	1.00	1.17

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $178,438K ÷ $145,748K
= 1.22

The current ratio of Cars.com has been fluctuating over the past eight quarters, ranging from a low of 1.22 in Q4 2023 to a high of 1.62 in Q2 2022. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A ratio below 1 indicates potential liquidity issues, while a ratio above 1 suggests the company is in a strong position to meet its short-term obligations.

In general, Cars.com has maintained a current ratio above 1, indicating that the company has had sufficient current assets to cover its current liabilities throughout the period. However, it is important to note the downward trend in the ratio from Q2 2022 to Q4 2023, which may be a cause for concern as it indicates a potential decrease in the company's ability to cover its short-term obligations with its current assets.

Further analysis and monitoring of the current ratio trend over upcoming quarters would be valuable in assessing the company's liquidity position and financial health.